MicroStrategy founder Michael Saylor has recently shifted his stance on spot Ether exchange-traded funds (ETFs), suggesting that their approval by U.S. regulators could significantly benefit Bitcoin. During a May 25 episode of the “What Bitcoin Did” podcast with host Peter McCormack, Saylor discussed the broader implications of this regulatory move.
“Is this good for Bitcoin or not? Yeah, I think it’s good for Bitcoin. In fact, I think it may be better for Bitcoin because we are politically much more powerful, supported by the entire crypto industry,” Saylor said.
Following the U.S. Securities and Exchange Commission (SEC)’s approval of eight spot Ether ETFs on May 23, Saylor remarked that these ETFs act as an additional line of defense for Bitcoin. He believes this move will “accelerate institutional adoption,” as it signals to previously hesitant investors that crypto is a legitimate asset class.
Saylor explained that institutional investors will likely diversify their portfolios across various cryptocurrencies, but Bitcoin will remain the dominant choice. “I think mainstream investors will say, ‘Oh, there is a crypto asset class now. Maybe we’ll allocate 5% or 10% to the crypto asset class, but Bitcoin will be 60% or 70% of that,'” he predicted.
This is a notable change from Saylor’s previous skepticism about the likelihood of SEC approval for spot Ether ETFs. He had earlier suggested that Bitcoin would be the sole asset securitized and offered as a spot ETF by Wall Street.
On May 3, Cointelegraph reported Saylor’s prediction that the SEC would classify Ethereum (ETH) and other cryptocurrencies like BNB, Solana, XRP, and Cardano as securities. He believed these tokens would not be wrapped by a spot ETF or accepted by mainstream institutional investors.
The crypto community has taken note of Saylor’s evolving views. Bitcoin commercial litigator Joe Carlasare remarked on Saylor’s change of heart in a May 25 X post, while crypto analyst Ricky Bobbyy speculated whether Saylor might even consider buying ETH, noting the significant shift in his perspective.
As the crypto landscape continues to evolve, Saylor’s latest comments highlight the dynamic interplay between different cryptocurrencies and the potential ripple effects of regulatory decisions.